On Friday, that could have all changed if every family member agreed to split the money 50-50 between the two families. Only one family member rejected the agreement: Ashley Baker, the 25-year-old daughter of Butch Baker.

As a result, Peter Wu, Butler's longtime partner and father of her two children, is working long hours as a bus driver and raising two young boys by himself, without the help of any donations.

There's $566,800 still sitting in a Wells Fargo bank. Joe Hernandez, President of the Santa Cruz Police Officers Association, said Ashley Baker is demanding that the money is split 5-ways between herself, her sister, her brother, and Butler's two sons.

KSBW tried several times to contact Ashley Baker and her Santa Maria-based attorney, David Bixby. Neither responded for comment.

Butch Baker's widow, Kelly Baker, said she believes the memorial fund, "Is a gracious gift that everybody has given from the heart. It's never been an entitlement."

Kelly Baker said, "I support the police department. It's just unfortunate that they've gotten threatened and something ugly is going out of it because it was never intended that way. It's just embarrassing that it turned into something like this."

Ashley Baker is not Kelly Baker's daughter; her mother is Butch Baker's ex-wife.

In February 2013, Jeremy Goulet ambushed Butler and Butch Baker when they arrived at his house to question him about a sexual assault against one of his co-workers at the Kind Grind coffee shop. He killed the two detectives, put on their bullet proof vests, and tried to shoot more officers until they gunned him down, police said.

Almost immediately after the detectives were murdered, money started pouring in from concerned community members to help the families continue on after the tragedy.

"We started to get phone calls, emails, the inquiries from media outlets, and banks saying that people wanted to donate," Hernandez said.

The well-intended donations were first promoted as scholarship funds and intended for the officers' children. Later the money was combined with other donations and funds into one big fund, and was named the "memorial fund."

The Santa Cruz Police Officers Association union is in charge of the memorial fund and sent letters to the families announcing the intention to distribute the money 50-50. Ashley Baker responded by threatening with a lawsuit, Hernandez said.

"Our union cannot afford a lawsuit. If she were to sue us, she's suing the men and women of the police officers association," Hernandez said.

So, what's next? Hernandez says the police officer's union will continue to reach out to Ashley Baker, but the issue could end up in court.

Santa Cruz heroes: Butch Baker and Elizabeth Butler

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SCPD

Sgt. Butch Baker and Det. Elizabeth Butler were the first Santa Cruz Police Department officers to be killed in the line of duty.